PREMIER BREWERIES ETC. versus STATE OF KERALA

PREMIER BREWERIES ETC. versus STATE OF KERALA

Under Section 5(5) of the Kerala General Sales Tax Act, packing materials (such as cardboard cartons for liquor) are taxable at the same rate and levy point as the goods in them, regardless of whether charged separately or previously taxed. The turnover of such packing materials is to be included in the turnover of the goods, and even if cartons were already taxed, the statutory scheme requires taxation at the rate applicable to liquor when sold packed.

Parties
Appellant Assessee: Premier Breweries Limited; Respondent: State of Kerala
Jurisdiction
India
Judgment Date
18 December 1997
Procedural Posture
Civil Appeal / Final Judgment on Appeal From Kerala High Court (from T.r.c. No. 71/91 in T.a. No. 197 of 1990)
Outcome
Appeals and special leave petitions dismissed.
Legal Topics
Sales Tax, Valuation of Turnover, Packing Materials Taxation
Tax Law Sales Tax Valuation of Turnover Packing Materials Taxation

Case Brief

Summary, issues, holding and outcome

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Parties

Premier Breweries Limited

Appellant Assessee

State of Kerala

Respondent

Procedural Posture

Civil Appeal / Final Judgment on Appeal From Kerala High Court (from T.r.c. No. 71/91 in T.a. No. 197 of 1990)

Legal Issues

  1. 1 Whether cardboard cartons used for packing liquor bottles are to be taxed at the same rate as liquor under the Kerala General Sales Tax Act, 1963
  2. 2 Whether separate charging for liquor and containers affects the rate and point of tax on packing materials
  3. 3 Whether previous single-point tax paid on cartons exempts them from subsequent taxation

Ratio Decidendi

Under Section 5(5) of the Kerala General Sales Tax Act, packing materials (such as cardboard cartons for liquor) are taxable at the same rate and levy point as the goods in them, regardless of whether charged separately or previously taxed. The turnover of such packing materials is to be included in the turnover of the goods, and even if cartons were already taxed, the statutory scheme requires taxation at the rate applicable to liquor when sold packed.

Court Disposition

Appeals and special leave petitions dismissed.

Orders

  • Assessment revised to tax cartons at 50% upheld.
  • No order as to costs.